For enterprises, through factoring, their accounts receivable can be converted into cash in advance, and financing can be obtained from banks in advance after delivery. Within the amount approved by the factor, they can apply for prepayment financing with the maximum invoice amount of 80%, and timely convert accounts receivable into cash, thus improving the efficiency of capital utilization.
At the same time, enterprises can also avoid the buyer's payment risk through factoring. After the bank provides the buyer's credit risk guarantee for the enterprise's accounts receivable, if the buyer cannot pay due to credit factors, the bank will perform the payment, and the creditor's rights can be guaranteed 100%.
For banks, factoring can make them get more? Benefit. As an intermediary service, factoring can get higher service commission. The factoring fee can be charged individually or in combination according to the buyer's credit risk guarantee, collection, credit review and financing provided by the enterprise, which is generally 0.5% ~ 2% of the invoice amount, and financing interest is also charged when financing.
Question 2: What does factoring mean? Domestic factoring business? Enterprises transfer accounts receivable arising from selling goods, providing services or other reasons to banks, and banks provide them with comprehensive financial services such as accounts receivable financing, business credit investigation and accounts receivable management, so that enterprises can obtain payment in advance and speed up capital turnover. The audit point of factoring bank is mainly to audit the repayment ability of seller and debtor.
Factoring business process:
(1) The seller shall submit the company's relevant materials to the bank, submit the authorization for companies and individuals to inquire about credit records, open an ordinary account in the bank, apply for a credit line from the bank, and submit relevant materials to the guarantee company at the same time.
② The bank evaluates the seller's credit and approves the credit limit;
(3) After the seller and the buyer complete the delivery inspection and form effective and flawless creditor's rights, they sign the factoring business elements with the bank (including loan application, factoring contract, accounts receivable transfer list, accounts receivable creditor's rights transfer notice, entrusted payment agreement, letter of guarantee, downstream enterprise accounts payable and term confirmation, commitment letter, etc.). ); Provide sales contracts with downstream enterprises, bills of lading, seller's VAT invoices, letters from downstream enterprises confirming accounts payable and deadlines, annual and monthly business licenses of downstream enterprises, payment receipts, etc. At the same time, the seller, the counter-guarantor and the guarantee company sign the guarantee elements (including guarantee application, joint guarantee commitment letter, enterprise shareholders' meeting resolution, guarantee agreement and counter-guarantee contract).
(4) After the guarantee company is approved, it will sign the guarantee requirements with the bank.
⑤ When the bank approves the loan, the seller will remit the bank deposit and the guarantee company deposit to the designated account, and pay the factoring fee, guarantee fee and financial consulting fee at the same time.
The bank lends money to the seller, and the seller pays the money to the upstream enterprise of the seller.
⑦ After obtaining the financing, the seller shall pay the interest on time as agreed in the letter of commitment, make a good statement and deposit at the end of the month, and provide the statements of downstream enterprises and other materials as required by the bank.
(8) After the financing expires, the downstream enterprises shall fulfill their repayment obligations. If the downstream enterprise fails to repay in full and on time, the seller shall fulfill the repayment obligation.
Question 3: What is commercial factoring?
To put it simply, the seller sells the goods to the buyer, and the seller can transfer the accounts receivable arising from sales or contracts in the course of trade to the factoring company, and then the factoring company will provide cash flow for the seller in advance for procurement and production, so as to avoid the problem of enterprise capital turnover during the period from the generation of accounts receivable to the recovery. Commercial factoring is a mysterious industry with many trade secrets. "Engaged in accounts receivable business involves many industries, and all enterprises involved in trade credit sales will need factoring companies." With the development of the market, credit sales are becoming more and more common in transactions, which has laid a good market foundation for the development of factoring business.
Question 4: What does a factoring company mean? Factors (usually banks in China) provide financing to sellers who have trade relations and sell on credit. The seller transfers the accounts receivable of this trade to the bank, and the buyer directly repays the bank after the accounts receivable expires. The general financing amount is 78% off the amount of accounts receivable.
Question 5: What does a factoring company do? Factoring companies make insurance claims.
Question 6: What does the bank mean by "re-factoring"? What is the difference between factoring and factoring? Factoring refers to the contractual relationship between the seller, supplier or exporter and the factor. According to this contract, the seller, supplier or exporter will transfer their current or future accounts receivable to the factor based on the goods sales or service contract signed with the buyer (debtor), and the factor will provide them with at least two services such as trade financing, sales ledger management, accounts receivable collection, credit risk control and bad debt guarantee.
Re-factoring business is equivalent to secondary factoring business, that is, the seller transfers the accounts receivable to the factor or bank, and the factor or bank transfers the accounts receivable to other factors or banks. For example, the international double factoring business is a kind of re-factoring.
In practice, there are many different ways to operate factoring business. Generally can be divided into: recourse factoring and non-recourse factoring; Explicit factoring and implicit factoring; Discount factoring and maturity factoring
Question 7: What is commercial factoring? A commercial factoring company refers to an enterprise that accepts all the rights and interests of accounts receivable and provides financing, management, collection and repayment of accounts receivable to the transferor. It includes at least two businesses and can be called a commercial factoring company.
The question you asked should be about financing. If it is financing, it is upstream supplying to downstream, and an account receivable is generated between them, corresponding to an account period. Factoring financing refers to lending upstream to supplement the upstream capital flow in advance after the statement is issued, and accordingly, when the downstream repays, it will return to the factoring company or the supervision account designated by both parties.
Above.
Question 8: What is bank factoring? The factoring business of banks can be divided into domestic factoring business and foreign factoring business.
The popular point of domestic factoring business will also be called accounts receivable financing, that is, after the company passes the bank's audit, it transfers your accounts receivable to the bank and obtains funds in advance. According to different types, it can be divided into buyout factoring and repurchase factoring. The audit point of factoring bank is mainly to audit the repayment ability of the debtor (that is, the company that owes money to the company).
Foreign factoring business is mainly a financial product designed according to the import and export business of import and export enterprises, and its main function is to let import and export enterprises obtain funds in advance. Specific products include packaged loans, invoice discounts and so on.
Question 9: What is the profit model of commercial factoring? The profit model of factoring business is generally to collect interest and factoring fees from customers, which can not only bring huge profits, but also create considerable intermediary business income for factoring companies. Generally speaking, the seller's factor can not only obtain a certain proportion of the invoice amount, but also obtain financing interest by providing financing services to the seller; As a buyer's factor, the commission rate charged is higher because it bears the buyer's credit. Therefore, in recent years, commercial banks and factoring companies are very optimistic about the potential of the factoring market, and have launched fierce competition in this field, and the factoring industry has gradually become a new profit growth point in the financial industry.